04/09/2008 - 14:23

Zambezi raising short of $4m target

04/09/2008 - 14:23

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West Perth-based Zambezi Resources Ltd has fallen short of its $4.1 million capital raising, with less than an eighth of shares on offer subscribed to by shareholders.

Zambezi raising short of $4m target

West Perth-based Zambezi Resources Ltd has fallen short of its $4.1 million capital raising, with less than an eighth of shares on offer subscribed to by shareholders.

In July the mineral explorer announced it will raise $4.1 million through a non-renounceable rights issue with one new share, priced at 12.4 cents each, issued for every 5.7 shares held.

Today the Zambia-focused company advised the market that of the 33 million shares on offer under the rights issue, only 4.44 million were taken up by eligible shareholders, raising $550,137.

The directors now hold the right to place the shortfall of 28.6 million shares within three months of the closing date.

The company said any such placement will be undertaken at the same issue price.

Funds raised from the rights issue will fund low-level exploration activities after it suspended all but one drilling activity in Zambia due to uncertainty in global markets.

Shares in Zambezi closed down 0.5c to 10c today.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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